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A hotel was fully insured against fire damages. Two years after the policy was issued an electrical fire destroyed five guest rooms. The fire damage
A hotel was fully insured against fire damages. Two years after the policy was issued an electrical fire destroyed five guest rooms. The fire damage amounted to a loss of $85,000. The agent had placed the insurance coverage with three property insurers. Insurer A provided $1,850,000 of coverage; insurer B covered $2,100,000 while insurer C had $1,050,000 of coverage. The policy contained a pro rata liability provision. How much will each insurer pay towards the loss? (
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